“The decision today to increase award and minimum wages by 4.75 per cent will impose a significant burden on businesses at a time of growing cost pressures and prolonged uncertainty,” said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.
“Australian employers are facing a very difficult outlook, with the continuing energy crisis weakening the economy while driving business costs higher. We know conditions will worsen in the coming months as the full effects of the crisis come to fruition.
“The Expert Panel should be commended for recognising these threats, and rejecting a baseless union push to raise award wages well above what will be a temporary inflation spike. This would have further deepened and lengthened the crisis we are now confronting.
“However, the impact of the decision will be very hard to bear for businesses under pressure. For many businesses this will be a confronting number to contemplate. Outside pandemic-affected years, this is the largest increase awarded under the Fair Work Act.
“The decision to phase out the C13 rate, the lowest rate applicable to ongoing employment in many awards, will also add additional pressure on employers in many vulnerable industries, including in the horticultural and manufacturing sectors. This is a blunt approach that should have been given more detailed consideration.
“Employers will clearly struggle to absorb these high wage increases at a time when costs are surging, and conditions are deteriorating. This decision will inevitably flow through to more business financial pressure, higher prices and lower employment in the coming months,” Mr Willox said.
